Difference Stock Trading and BTC trading - page 2.

KnightElite

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Quote from: pawanjain on July 24, 2020, 11:11:19 AM

There are many differences between stock trading and crypto trading. For instance, Stock market has fixed timings whereas crypto trading is available 24 x 7 x 365.
Stocks have more liquidity and are less volatile whereas crypto has less liquidity than stocks but are highly volatile.
Cryptocurrencies can be bought in decimals for example you can 0.0001 bitcoin too whereas for a particular stock you must buy at least 1 whole share.

Stocks have more fundamentals than crypto where in fundamental analysis is more likely usable than technicals, trading stocks and cryptocurrencies have a lot of differences. We can trade cryptocurrencies 24/7 but in stocks there are only specific market hours in order for us to trade it. Stocks also can only trade weekdays and the stock market are close whenever there is holiday and also every weekends. When it comes to technicals, there are no differences because both of them are volatile but stocks are more news driven where it can affect the price when there is certain disclosure while cryptocurrencies are not news driven.

GreatArkansas

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Quote from: barbara44 on July 22, 2020, 02:46:24 PM

If you're trading, the difference isn't much and if you have been trading stocks and you're an expert in it you will definitely understand how to trade cryptocurrency easily. When it comes to general differences and similarities, there are a few things that differentiates them all, but these differences have nothing to do with the strategies that are being used.

There is exteremely huge difference for Bitcoin and stocks.
I know some trader who are started to trade stocks but when they entered in cryptocurrency or Bitcoin, they have much low winning rate compare to their trading in stocks.
That's why I can say that trading with Bitcoin and stocks got some differences, maybe there are some part that got similarities.
So, if you are pro and owning in trading stocks, and when you trade Bitcoin/cryptocurrency, you will still do the same with stocks?

MCobian

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Both stock trading and Bitcoin trading have advantages and disadvantages, so it depends on us more suitable trading stocks or Bitcoin.
But I prefer Bitcoin trading because the price is volatile, in contrast to trading stocks because of more liquidity. For me the price of Bitcoin
is volatile, it's easier to make profits. Therefore even though the risk of Bitcoin trading is greater, I consider Bitcoin to be more profitable.

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Quote from: mk4 on July 22, 2020, 03:23:07 AM

1. Stocks has far more liquidity than bitcoin and cryptocurrencies hence the cryptocurrency markets are highly more volatile.
2. Cryptocurrencies are mostly traded based on hype cycles.
3. Cryptocurrency markets are open 24/7, stock markets are open like 8 hours a day in weekdays and non-holidays.

Cryptocurrencies in many countries now have the same liquidity as the stock. Although in most of the countries, liquidity is still a problem for crypto holders.

Hype or speculative are not just new due to cryptocurrencies. Stocks and commodities are also facing such hype based rallies and panic based fall down markets. Even some of the company stocks in the market are based upon the hype and faking mechanism.

Forex markets are available all 24 hours and all days a week but may not have enough volume. Due to non-regulated (decentralization) nature, we are having crypto exchanges serving all the times. Moreover exchanges are independent entities whereas stocks are having different structure.

Whether you trade stocks or crypto assets, research is necessary evil in every aspect. Learn, research, carry out background check and then invest.

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Quote from: sakurro on July 22, 2020, 03:15:11 AM

Is there any fundamental difference between stock trading and Bitcoin trading?

Do both markets behave in the same fundamental way or are there any significant differences in crypto?

Could you be an expert about stock trading and then do wwll on cryptos as well?

There are many similarities between the stock market and the crypto market. Both can be termed as assets. Trading in both is very similar except the fact that the crypto market is highly volatile when compared to the stock market. Moreover, the prices of the stocks depends on how well the company is performing and how much profit its making.

Whereas in cryptos it is more like how many people are investing their money into the project which drives the price up. But, if we look at them side by side, basically both work on the mechanism of demand and supply. The stocks are limited and so are the crypto coins so greater the demand and lower the supply, greater is the market value.

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Quote from: sakurro on July 22, 2020, 03:15:11 AM

Hi all,

Is there any fundamental difference between stock trading and Bitcoin trading?

Do both markets behave in the same fundamental way or are there any significant differences in crypto?

Could you be an expert about stock trading and then do wwll on cryptos as well?

Best,

Sakurro

Stocks are less volatile
Stocks/Forex does have much more trading volume or liquidity
Stocks market is regulated

Common differences between the two and when you do trade up on stocks for a while then you will surely feel the difference
when you do tend to switch up to crypto and also i do agree into those previous points that this market is really highly
reactive to hype and fuds.

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Quote from: barbara44 on July 22, 2020, 02:46:24 PM

If you're trading, the difference isn't much and if you have been trading stocks and you're an expert in it you will definitely understand how to trade cryptocurrency easily. When it comes to general differences and similarities, there are a few things that differentiates them all, but these differences have nothing to do with the strategies that are being used.

I agree jumping from stock to crypto is easy especially when you are already aware of what stock trading is all about there have been some data that says people in stock trading are trying to trade on cryptocurrencies. I just don't know if the terms used in both of these are completely the same? or likely to be the same?

Don't know that much of stocks tho but I see the point of futility of the differences compare to the strats.

Quote from: barbara44 on July 22, 2020, 02:46:24 PM

The number one difference is that cryptocurrency trading is easy to start compared to stock where you are required to have a particular amount of money before you will be able to start trading. In cryptocurrency trading, it doesn't have any limit, you can trade no matter the amount you have in your account. Apart from that, sessions are another difference, unlike cryptocurrency that can be traded any day and time, stocks have limited sessions.

Without having a background in trading, a simple videos on the internet can teach you on how to trade cryptocurrencies. I even started from zero knowledge, then gradually I started trying on my own, it isn't that hard as I thought of it.

Stocks have limited session in trading? I didn't know this, is this what a centralized asset look like?

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Quote from: sakurro on July 22, 2020, 03:15:11 AM

Hi all,
Is there any fundamental difference between stock trading and Bitcoin trading?
Do both markets behave in the same fundamental way or are there any significant differences in crypto?
Could you be an expert about stock trading and then do wwll on cryptos as well?
Best,
Sakurro

Stocks are much less volatile, while cryptocurrencies market are much more volatile. The stock market is much more mature than the crypto market. Since the stock market is a very mature market and there is a huge amount of liquidity, technical analysis is very effective in this market. On the other hand, the crypto market has not yet matured resulting in extreme volatility and much less liquidity in the crypto market. As a result, it is not possible to go too far by following the technical analysis.

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All have been mentioned earlier replies but I have something to add in here. First thing first here, crypto trading isn't to give any legal entitlement to the owner. Because since crypto is unregulated, legal rights weren't there. Not unlike stock market, traders have fully regulated they they pay their taxes.

There are too many factors to consider it's differences, I only state those basic pieces of information and also others are already mentioned above. Or for further information, I leave here a link that has a good article that worth it to read.

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Quote from: sakurro on July 22, 2020, 03:15:11 AM

Hi all,

Is there any fundamental difference between stock trading and Bitcoin trading?

Do both markets behave in the same fundamental way or are there any significant differences in crypto?

Could you be an expert about stock trading and then do wwll on cryptos as well?

Best,

Sakurro

any financial market has similarities but is different in nature. We can learn the same about indicators and they can apply to both but the volatility is always different. There is a rule that when participating in any game, you must understand the rules there, otherwise you will be eliminated. There are many traders in securities and forex participating in the crypto market who are losing a lot due to the high volatility of bitcoin. Each market has its own characteristics and we must recognize it if we do not want to lose money.

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Quote from: exstasie on July 24, 2020, 05:37:40 AM

How does that make hype cycles a driving force in trading? There are plenty of penny stocks out there with zero fundamental value. That doesn't mean hype cycles are driving their day-to-day price action. Very few technologies (let alone thousands of altcoins) have actually traveled through an identifiable hype cycle. https://en.wikipedia.org/wiki/Hype_cycle#Criticisms

Every long once in a while you have a new technology trigger like DeFi, but after the initial hype, all altcoin niches completely revert to a standard correlation to BTC. They spend years and years and years simply reacting to and following the BTCUSD market.

Thus I would say altcoins trade mostly based on their correlation to BTC. As for BTC, hype cycles might be a good explanation for its valuation in a long term sense (the jury is out) but they have nothing to do with trading, which is a short term endeavor.

Never said that hype cycles was the only factor that drive's their price action, hence why I said "Cryptocurrencies(in general) are mostly traded based on hype cycles." Because their companies or "developer teams" hyping them up with whatever cheesy marketing tactic or misleading partnership that they could manufacture is a huge factor in their price spikes.

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There are many differences between stock trading and crypto trading. For instance, Stock market has fixed timings whereas crypto trading is available 24 x 7 x 365.
Stocks have more liquidity and are less volatile whereas crypto has less liquidity than stocks but are highly volatile.
Cryptocurrencies can be bought in decimals for example you can 0.0001 bitcoin too whereas for a particular stock you must buy at least 1 whole share.

exstasie

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Quote from: mk4 on July 23, 2020, 07:48:27 AM

Quote from: exstasie on July 23, 2020, 06:58:34 AM

I wouldn't say that. Hype cycles might be a good narrative for explaining BTC's long term price trajectory, but these cycles take place over years. They aren't really useful for trading.

Sure, but that's with BTC specifically though(and maybe with ETH as it has decent liquidity). I was referring to the cryptocurrency markets in general; which consists of like 99.99¯% altcoins which are mostly hype and vaporware with little to no fundamentals.

How does that make hype cycles a driving force in trading? There are plenty of penny stocks out there with zero fundamental value. That doesn't mean hype cycles are driving their day-to-day price action. Very few technologies (let alone thousands of altcoins) have actually traveled through an identifiable hype cycle. https://en.wikipedia.org/wiki/Hype_cycle#Criticisms

Every long once in a while you have a new technology trigger like DeFi, but after the initial hype, all altcoin niches completely revert to a standard correlation to BTC. They spend years and years and years simply reacting to and following the BTCUSD market.

Thus I would say altcoins trade mostly based on their correlation to BTC. As for BTC, hype cycles might be a good explanation for its valuation in a long term sense (the jury is out) but they have nothing to do with trading, which is a short term endeavor.

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The fundamental difference is that when you are buying a stock you are buying into that company, so you believe that the company you picked will be doing better in the future so that it is shares would go up, if the company doesn't do well that means the stock price will not do well neither.

So, it is not a decision based on other people, it is a bit about people buying and selling because let's be honest even if company does well people could still sell and drop the price but that would not change too much in the company value. On contrary to that bitcoin is something that is valued depending on what people think it is valued, if enough people thinks it is $20k, the price would go up, if enough people thinks it is $5k it would go down, so it is all up to people to decide on that.

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Quote from: mk4 on July 22, 2020, 03:23:07 AM

1. Stocks has far more liquidity than bitcoin and cryptocurrencies hence the cryptocurrency markets are highly more volatile.
2. Cryptocurrencies are mostly traded based on hype cycles.
3. Cryptocurrency markets are open 24/7, stock markets are open like 8 hours a day in weekdays and non-holidays.

All of those are good points, though I would point out that not all stocks have the same level of liquidity. Blue chip stocks and ones that are included in the major indexes have very high liquidity, whereas OTC stocks have so little liquidity that you'd be crazy to buy a big position in any of them--kind of like some of the more obscure altcoins that have very low trading volume.

Point #3 is one of the coolest things about crypto markets IMO. I participate in the stock market (though I wouldn't call myself a trader), and I really wish it were open 24/7 like crypto exchanges are. Doubt that's ever going to happen, though.

One difference I'd mention is the fees. Some online stock brokerages offer commission-free trading, which is very cool. None of the crypto exchanges I know of do that, plus you usually have to pay to withdraw your coins in addition to the network fee to send the coins to the exchange in the first place. Those costs can add up over time.

And the biggest difference between trading stocks and crypto is that the latter is far more volatile and IMO much more risky. That aside, if you put your faith in technical analysis, you can apply it to both stocks and crypto.

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There are many existing threads about this topic
Here's some:
https://bitcointalksearch.org/topic/crypto-trading-vs-stock-trading-2661484
https://bitcointalksearch.org/topic/stocks-vs-cryptocurrencies-name-the-different-between-this-two-2186703
https://bitcointalksearch.org/topic/forex-trading-or-crypto-trading-and-stock-exchange-3227383
https://bitcointalksearch.org/topic/how-is-trading-cryptocurrency-different-from-stocks-and-forex-trading-2984594
https://bitcointalksearch.org/topic/stock-market-vs-bitcoin-2091215

Quote from: sakurro on July 22, 2020, 03:15:11 AM

Could you be an expert about stock trading and then do wwll on cryptos as well?

This is very possible depending on you on how you will manage to learn both. There are traders that switch between those two and doing well at it. But if you're just a starter, It's better to just focus on one.

ashmodeus

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1.Of course they have.
A. liquidity
B. Legality/Validity
C. The risk/Volatility
D. Market Players and behavior

2.Mostly have a different way,which crypto is more wild than stock market,but lately Bitcoin seems tend to following how Stock market movement,hope BTC will get the own Way soon.

3. its same like can u knowing your girlfriend's sister attitude ? even if they are twins ? , give more time on crypto and u will know crypto well.

TravelMug

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I would also like to point the obvious, bitcoin market is still fairly young and as a result, it's really hard to used technical analysis as there are no patterns to rely from the past. And that is why it is so volatile as compare to stocks. And lest we forgot, crypto market is unregulated and decentralised, transactions happen anytime of the day regardless where you are in the world.

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Market volatility makes them different from each other. And with the hypes rises in Bitcoin trading, people are jumping on it.
But could we expect that BTC trading will me more profitable than stock trading? It only depends on how you manage your trade.

Quote from: sakurro on July 22, 2020, 03:15:11 AM

Could you be an expert about stock trading and then do wwll on cryptos as well?

Theres is no such huge difference, if you are good in stock trading, you can also be good in crypto trading, and you can also apply the strategies you have from stock trading. Only you need to manage it carefully as we know volatility makes it way different.

If you are not a high-risk takers, better to choose and stick to stock trading but if you are willing to face into a very challenging trading experience, well, BTC trading is good for you.

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Quote from: exstasie on July 23, 2020, 06:58:34 AM

Quote from: mk4 on July 22, 2020, 03:23:07 AM

Cryptocurrencies are mostly traded based on hype cycles.

I wouldn't say that. Hype cycles might be a good narrative for explaining BTC's long term price trajectory, but these cycles take place over years. They aren't really useful for trading.

Like virtually every other market, BTC spends the vast majority of the time trading inside a range, so scalping and swing trading techniques are just as applicable to BTC as they are to stocks.

TA is exactly the same in both markets. Fundamental analysis is quite different, however.

Sure, but that's with BTC specifically though(and maybe with ETH as it has decent liquidity). I was referring to the cryptocurrency markets in general; which consists of like 99.99¯% altcoins which are mostly hype and vaporware with little to no fundamentals.

Topic: Difference Stock Trading and BTC trading - page 2. (Read 582 times)